Why is Raw Edge Indust. falling/rising?

As of 04-Jul, Raw Edge Industrial Solutions Ltd is experiencing a price increase, currently at Rs 25.00, which reflects a rise of Rs 1.99 or 8.65%. Today's price summary indicates that the stock outperformed its sector by 8.89%, reaching an intraday high of Rs 25.5, which is a 10.82% increase. However, despite this positive movement, the stock has shown a significant decline over the past year, with a return of -36.48%, and has consistently underperformed against the benchmark over the last three years. The company's weak long-term fundamentals, including a -20.65% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 6.63 times, contribute to concerns about its profitability and ability to service debt, which may temper investor enthusiasm despite the recent price rise.
In the broader market context, the stock's short-term performance of +1.83% over the past week contrasts sharply with the Sensex, which has declined by -0.74% during the same period. This suggests that while Raw Edge Industrial Solutions Ltd is gaining traction in the short term, it remains vulnerable to broader market trends and its long-term performance remains a concern. The company's valuation appears attractive compared to its peers, but the significant drop in profits and cash reserves raises questions about its sustainability and growth potential, indicating that investors should remain cautious despite the recent uptick in stock price.